Delhi HC fines Amazon Rs 340 crore for 'Beverly Hills Polo Club' trademark violation
By MYBRANDBOOK
Lifestyle Equities CV accused Amazon Technologies of selling products under the "Symbol" brand with a logo resembling its "Beverly Hills Polo Club" trademark, while also implicating Cloudtail India for similar infringement from 2015-2020
In a significant ruling, the Delhi High Court has ordered e-commerce giant Amazon to pay $39 million (approximately Rs 340 crore) in damages to Lifestyle Equities CV, a Netherlands-based company, for trademark infringement involving its "Beverly Hills Polo Club" logo. The decision follows a lawsuit filed by Lifestyle Equities against Amazon, accusing the company of using a deceptively similar logo on various products sold through its platform.
Lifestyle Equities CV, which owns the registered trademark for the "Beverly Hills Polo Club" logo, alleged that Amazon Technologies was manufacturing and selling products under the brand "Symbol," which featured a logo closely resembling its own. The company also accused Cloudtail India, a former vendor on Amazon’s marketplace, of selling products bearing the infringing logo between 2015 and 2020.
Also Read: Amazon faces cloud growth challenges amid hardware and energy constraints
In response to the trademark violation, the Delhi High Court issued an interim injunction in October 2020, instructing Amazon and other involved parties to immediately stop using the disputed logo. The court also ordered Amazon Seller Services to remove merchandise bearing the infringing mark from its platform.
Cloudtail India, which ceased its operations on Amazon in 2023, agreed to settle the matter by acknowledging its use of the infringing logo. The company revealed that it had generated Rs 23.92 lakh in revenue from these products, with a profit margin of 20%. As part of the settlement, Cloudtail was instructed to pay Rs 4.78 lakh in damages, representing 20% of the revenue it earned from selling the products with the disputed logo.
Although Cloudtail accepted responsibility for its actions, Lifestyle Equities insisted that both Amazon and Cloudtail should be held accountable for the trademark infringement. The court’s ruling has thus extended the Amazon penalty to include both parties in the trademark case.
Cloudtail India was launched in 2014 as a joint venture between Amazon and Prione Business Services, where Amazon held a 49% stake. The remaining stake was owned by Catamaran Ventures, led by Indian billionaire NR Narayana Murthy. However, in 2022, Amazon and Catamaran Ventures ended their partnership following allegations of anti-competitive practices, including preferential treatment and predatory pricing, which were raised by industry associations.
This trademark case highlights the increasing scrutiny of major online platforms like Amazon, underscoring the importance of safeguarding intellectual property rights and ensuring accountability for trademark violations in the global e-commerce industry.
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